Academy of Accounting and Financial Studies Journal (Print ISSN: 1096-3685; Online ISSN: 1528-2635)

Abstract

The Extent of External Auditor Relaying on Internal Auditor Work Under ERP Continuous Auditing: The Case of Jordan

Author(s): Ahmad Al-Tarawneh, Sulaiman Weshah, Mohammad Humeedat

The business experienced to implement ERP systems for improving operations then internal and external auditors facing new challenges need to improve their understanding within ERP environment, within ISA 610 does the external auditors mostly rely on the internal auditors’ work under ERP continuous auditing? The research depended on questionnaire designed from main questions related to evaluating risks and assessing controls for system’s data processing main steps (Inputs, Processing and Outputs), which distributed on internal auditors working inside companies adopting continuous internal audit for ERP systems (13 Jordanian Companies). In addition, for more reliability the designed questionnaire distributed on internal auditors working inside companies using ERP systems, but do not adopting continuous internal audit (44 Jordanian Companies). The research revealed that external auditor relies on continuous internal auditor work using ISA 610, which may indicate the need to improve external auditors’ abilities in understanding and auditing computerized systems in general, specially auditing ERP systems. The research recommended audit offices in Jordan to give more concern regarding auditor's training and developing skills related to modern electronic information systems and encouraging to have professional certifications related to information systems such as CISA – Certified Information Systems Auditor, CISSA - Certified Information Systems Security Auditor etc.

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